Quality Progress - February 2013 - (Page 60)
Standards Outlook
BY J.P Russell
.
Keeping Watch
Why supplier audits are growing in importance
Now more than ever, supply chain
management is important to ensure
organizations can compete in the global
market. Organizations continue to focus
on core competencies, resulting in greater
dependence on high-quality materials and
services from suppliers.
An audit program is a key component
for monitoring the external supply chain,
the management of which is an enterprise
within an enterprise. Many of the program
requirements for internal and external
audits are the same. But external audits
are different due to the customer-supplier
relationship.
Audit program managers must interface
with procurement departments to ensure
contracts contain access clauses and to
schedule audits or other oversight services
• Following up on and monitoring supplier
of the global supply chain. Oversight
of an audit program. Procurement person-
may be needed for first, second and
nel are sometimes called procurement
perhaps third-tier suppliers depending
specialists, buyers, purchasing agents, pur-
on organization objectives, customer
chasing managers and purchasing supervi-
requirements and risk.
sors. Depending on its needs, the auditing
such as vendor projects, changes, buy-
organization may employ procurement
resale and private label.
What’s involved
experience.
is taken on identified issues.
• Verifying special programs as needed,
and auditing personnel with international
The supply chain enterprise includes:
performance to ensure corrective action
• Procurement.
Procurement duties and responsibilities
Required reading
Usually, audit program managers and
• Requirements flow-down.
that involve the auditing function include:
auditors are not involved in establishing
• A logistics network.
• Creating and implementing
supplier requirements but are likely to be
• Manufacturing and technology, and
obsolescence management.
• Demand forecasting.
performance metrics, such as key
performance indicators.
• Monitoring and reporting trends in the
involved in their oversight.
Requirements may be technical,
logistical, administrative, legal or related to
• The customer service relationship.
supplier and contract base that could
supplier processes. Technical requirements
• Risk management.
affect supply.
typically come from the process designer
• Performance management.
The external audit program most likely
• Establishing and promoting relationships with suppliers and customers.
or owner; quality department; or technical,
procurement or legal department.
will be involved with the procurement,
The organization may need to develop
performance management and risk
close relationships with suppliers of
include physical characteristics, such
management aspects of the supply chain.
critical material and services. In some
as weight or dimensions; chemical
cases, partnerships might be estab-
composition; physical properties, such
lished.
as hardness, smoothness and finish; and
In many cases, the procurement department is the client that needs the services
60 QP • www.qualityprogress.com
Examples of technical requirements
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